delivered the opinion of the court:
The only question presented by this record is whether the facts set up in the plea, considered according to their legal effect, are sufficient to justify, the defendant in error in using its corporate powers in dispensing and furnishing intoxicating liquors to its members without first having taken out a dram-shop license according to the statutes of this State. The contention of the corporation is, that a tona fide club can dispense liquors to its members as incidental, merely, to its organization, without taking out a dram-shop license. Many cases from other jurisdictions are cited, holding this doctrine. The plaintiffs in error cite a large number of cases holding the contrary doctrine. The authorities seem to be in hopeless conflict on the subject. However, the statute of this State must govern the case.
The Dram-shop act, (Hurd’s Stat. 1901, p. 750,) in section 1, defines a dram-shop to be “aplace where spirituous or vinous or malt liquors are retailed by less quantity than one gallon,” and declares thése liquors to be intoxicating liquors within the meaning of the act. Section 2 provides that “whoever, not having a license to keep a dTam-shop, shall, by himself or another, either as principal, clerk or servant, directly or indirectly, sell any intoxicating liquor in any less quantity than one gallon * * * shall be fined,” etc. Section 7 provides that “all places where intoxicating liquors are sold in violation of this act, shall be taken, held and be declared to be common nuisances, and all rooms, taverns, eating houses, bazars, * * * or other places of public resort, where intoxicating liquors are sold in violation of this act, shall be deemed public nuisances.” Section 13 provides that “the giving away of intoxicating liquors, or other shift or device to evade the provisions of this act, shall be held to be an unlawful selling.” Other sections provide for the granting of licenses, etc.
Under the general laws of the State no person has the legal right to sell spirituous liquors without a license, and by doing so a fine is incurred, which may be collected by indictment or suit. (Kadgihn v. City of Bloomington,
The corporation or club, being the owner of the liquor, through its appointed agent delivers it to the member of the club on his request and receives a fixed compensation in money therefor. The property in the liquor passes to and becomes vested in the individual member, and the money paid is received for and becomes the property of the corporation. (State v. Social Club,
But it is not necessary to consider further the decisions of other States. This court has spoken on this subject in Rickart v. People,
Much is said in the argument about the question whether the corporation was organized in good faith for literary, social and benevolent purposes, or was a mere “shift or device” to carry on a dram-shop without a license, and thus to avoid the statute. The demurrer admits, of course, all the facts well pleaded but does not admit the mere conclusions of the pleader, and it is apparent from the pleadings that the corporation is engaged in selling intoxicating liquors in less quantities than one gallon without license. The mere fact that such liquors are sold to its members and for a price sufficient, only, to pay their cost and the cost of serving them, can, under the statute, make no difference. As we have seen, liquors so dispensed are sold, within the meaning of our statute, and such sales without license are a violation of the Dram-shop act. In this view of the case it is immaterial whether or not the organization and management of this corporate club are a mere “shift and device” to evade the statute. In either case the statute is violated.
It may be said, however, that very strong inferences arise from the facts alleged in the information and not denied by the plea, and from the facts averred in the plea, that one of the leading objects of the formation of the club was to furnish a place and opportunities for the dispensing of intoxicating liquors, without complying with the statute, to a large class of persons desiring and who could obtain them by paying a nominal initiation fee and becoming members. No male person not a minor, a lunatic or habitual drunkard was excluded by the constitution and by-laws from membership. Such excluded persons are usually excluded from dram-shops. No real or substantial provision was made for the support of the club and to pay the salaries of the officers or attendants, except from the sales of liquors and cigars to the members. So far as we can determine from the averments of the plea, the member desiring to obtain liquor or beer suggested to the officer of the club in attendance that he, the member, should be specially assessed, whereupon such officer levied an assessment upon him in such an amount as was “mutually agreeable,” not less than one dollar, and (as alleged in the information and not denied by the plea) tickets were issued to such member, for which he paid the amount assessed and then used them in procuring such liquors. While it may be true that in the formation of the club other and laudable purposes were intended to be subserved, still we cannot avoid the conclusion reached from a careful consideration of the facts admitted by the pleadings, that one of the controlling purposes of the corporation was the purchasing and dispensing to its members of intoxicating liquors without having obtained a license to keep a dram-shop,—and this, as we hold the law to be, is a violation of the statute. It follows that the court below erred in overruling the demurrer to the plea.
The judgment will be reversed and the cause remanded, with directions to sustain the demurrer, and for such further proceedings as to law and justice may appertain. ,, , , , , 11 Reversed and remanded.
